The Dutch bank ING has had another go at the numbers, calculating that the Greek Drachma would fall by 80pc against the D-Mark in a full-blown disintegration.
The Escudo and the Peseta would fall by 50pc, and the Lira and the Punt by 25pc. Germany would suffer a \”deflationary shock\”.
OK, so that\’s what would happen to the new currencies. The interesting point is:
If the intra-EMU currency misalignment is so extreme that free floats would cut Greece by 80pc, and Spain by 50pc, it surely validates the eurosceptic argument that monetary union has become a preposterous and unworkable arrangement.
Exchange rates are exchange rates, whether the currencies themselves exist or not. So if money is so badly mispriced within the eurozone, 50-80% in places out, what the fuck are all of these places doing in the same currency in the first place?